NEW YORK (AP) — Wealth management services provider National Financial Partners Corp. is selling itself to private equity firm Madison Dearborn Partners LLC for about $1.01 billion.
The deal calls for National Financial shareholders to receive $25.35 in cash for each of their shares. That's an 8 percent premium over the company's Friday closing stock price. In premarket trading, National Financial shares rose 6.7 percent to $24.97 on the news.
The New York firm is led by Jessica Bibliowicz, the daughter of former Citigroup CEO Sandy Weill.
Based on National Financial's 39.88 million outstanding shares, the deal is worth about $1.01 billion. The company said the deal has an equity value of about $1.3 billion, which includes the full value of its convertible debt.
The sale is expected to close in the third quarter.